The project was commissioned just before the bifurcation of the state and it was built to stabilise the ayacut of the delta region in downstream AP though the submergence area extends to Telangana. It has a storage capacity of 45 tmc ft of water.
Telangana chief secretary Rajiv Sharma wrote a letter to his counterpart I Y R Krishna Rao stating that AP government has started impounding the water in Pulichintala without providing resources for rehabilitation and resettlement of villages in Nalgonda district.
In an identical letter the Telangana chief secretary also requested Alok Rawat, Secretary, Water Resources, Government of India, to direct AP not to go ahead with impounding of Pulinchintala with water coming from Nagarjuna Sagar reservoir, according to the chief minister's office.